Update on Speculation Tax

Further details have been released in regards to the Speculation Tax. For full press release go to here.

Rates:

A rate design that will see British Columbians who are subject to the tax, paying lower rates than owners from outside the province in 2019 and beyond. Canadians from other provinces will have a rate of 1% in 2019 and beyond, while foreign investors and satellite families will pay a 2% rate.

In 2018, the tax rate for all properties subject to the tax is 0.5% of the property value.

In 2019 and subsequent years, the tax rates will be as follows:

2% for foreign investors and satellite families;

1% for Canadian citizens and permanent residents who do not live in British Columbia; and

0.5% for British Columbians who are Canadian citizens or permanent residents (and not members of a satellite family).

Exemptions:

Long term rentals: A long-term rental is a property that is rented out for at least six months out of the calendar year in increments of at least 30 days. In 2018, a long-term rental is a property that is rented out for three months of that year.

British Columbians with vacant second homes will be eligible for a non-refundable tax credit that is immediately applied against the speculation tax. This credit will offset a total of $2,000 in speculation tax payable. This tax credit will ensure that British Columbians do not pay tax on a second home valued up to $400,000.

For more expensive vacant properties, a credit will be available that ensures that tax only applies to the value of the property above $400,000.

Geographic areas:

Metro Vancouver

The Capital Regional District (excluding the Gulf Islands and Juan de Fuca)